Silicon Labs Announces First Quarter 2014 Results

AUSTIN, Texas--(BUSINESS WIRE)--
Silicon
Labs (NASDAQ: SLAB), a leader in high-performance, analog-intensive,
mixed-signal integrated circuits (ICs), today reported financial results
for its first quarter ended March 29, 2014. Revenue in the first quarter
was at the top end of guidance at $145.7 million, compared with $146.2
million reported in the fourth quarter. Additionally, the company
reported excellent performance on its balance sheet with strong cash
flows and effective working capital management.

Q1 Financial Highlights

On a GAAP basis:

Gross margin was 59.8 percent

R&D expenses were $42.5 million

SG&A expenses were $34.6 million

Operating income as a percentage of revenue was 6.9 percent

Diluted earnings per share were $0.18

On a non-GAAP basis (results exclude the impact of stock compensation,
amortization from acquired intangible assets and certain other items as
set forth in the reconciliation tables below):

Broadcast exceeded expectations with revenue of $50.7 million,
including record revenue in video.

Access revenue decreased slightly, as expected, to $22.7 million.

Product Highlights

Introduced a new version of the Simplicity Studio™ development
ecosystem supporting Silicon Labs' MCU products in a single, unified
platform, making the embedded design process easier, faster and more
efficient.

Announced the expansion of Silicon Labs' Ember® ZigBee® portfolio with
the introduction of a new ARM®-based system-on-a-chip family that
reduces the cost and complexity of deploying ZigBee solutions in smart
metering and home automation applications.

Acquired the full product portfolio and intellectual property of
Silicon Valley-based Touchstone Semiconductor, an early-stage
technology company and provider of low-power analog IC products
targeting Internet of Things applications.

Business Outlook

The company expects revenue in the second quarter to be in the range of
$147 million to $151 million. Second quarter diluted earnings per share
are expected to be between $0.15 and $0.19 on a GAAP basis and between
$0.43 and $0.47 on a non-GAAP basis. Both GAAP and non-GAAP estimates
include an estimated $0.03 per share effect from litigation costs.

"We continue to strengthen our position as a leading supplier of silicon
solutions for the Internet of Things," said Tyson Tuttle, CEO of Silicon
Labs. "We expect this momentum to drive record Broad-based revenue in
the second quarter."

Webcast and Conference Call

A conference call discussing the quarterly results will follow this
press release at 7:30 a.m. Central time. An audio webcast will be
available simultaneously on Silicon Labs' website under Investor
Relations (www.silabs.com).
A replay will be available after the call at the same website listed
above or by calling 1 (855) 859-2056 or (404) 537-3406 (international)
and by entering 39717388. The replay will be available through May 29.

About Silicon Labs

Silicon Labs is an industry leader in the innovation of
high-performance, analog-intensive, mixed-signal ICs. Developed by a
world-class engineering team with unsurpassed expertise in mixed-signal
design, Silicon Labs' diverse portfolio of patented semiconductor
solutions offers customers significant advantages in performance, size
and power consumption. For more information about Silicon Labs, please
visit www.silabs.com.

Forward-Looking Statements

This press release contains forward-looking statements based on Silicon
Labs' current expectations. The words "believe," "estimate," "expect,"
"intend," "anticipate," "plan," "project," "will" and similar phrases as
they relate to Silicon Labs are intended to identify such
forward-looking statements. These forward-looking statements reflect the
current views and assumptions of Silicon Labs and are subject to various
risks and uncertainties that could cause actual results to differ
materially from expectations. Among the factors that could cause actual
results to differ materially from those in the forward-looking
statements are the following: risks that Silicon Labs may not be able to
maintain its historical growth; quarterly fluctuations in revenues and
operating results; difficulties developing new products that achieve
market acceptance; dependence on a limited number of products and
customers; intellectual property litigation risks; risks associated with
acquisitions and divestitures; product liability risks; difficulties
managing our distributors, manufacturers and subcontractors;
inventory-related risks; difficulties managing international activities;
risks that Silicon Labs may not be able to manage strains associated
with its growth; credit risks associated with our accounts receivable;
dependence on key personnel; stock price volatility; geographic
concentration of manufacturers, assemblers, test service providers and
customers in Asia that subjects Silicon Labs' business and results of
operations to risks of natural disasters, epidemics, war and political
unrest; debt-related risks; capital-raising risks; the competitive and
cyclical nature of the semiconductor industry; average selling prices of
products may decrease significantly and rapidly; information technology
risks; conflict mineral risks and other factors that are detailed in the
SEC filings of Silicon Laboratories Inc.Silicon Labs disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. References in this press release to Silicon Labs shall mean
Silicon Laboratories Inc.

Note to editors: Silicon Laboratories, Silicon Labs, the Silicon Labs
logo, Simplicity Studio and Ember are trademarks of Silicon Laboratories
Inc. All other product names noted herein may be trademarks of their
respective holders.